If you want the most pure, authentic version of anything, you must go to the source. Everything further downstream ends up being watered down and of lower quality. It's the same in the world of music programming on television; you have to go to the source to find the purest form of entertainment. Les Garland knows a thing or two about music programming on television. Co-founder of MTV, VH1, and The Box (now MTV2), he is now heading up a new music entertainment channel that could change the face of music television.
Garland, and the team at The Tube (OTCBB: TUBM) took a gamble that a new law was about to be passed requiring television station owners to switch to a digital signal. Believing the law would pass, they put together The Tube to provide digitally broadcast music television. The gamble paid off and the law passed. Now, the Tube stands to be one of the first to market in this new concept that uses pre-existing distribution channels with a new signal technology requirement. The programming on The Tube is simple: all music.
That's it. No reality or awards shows, just music, including concert footage and music videos from a variety of Billboard toppers that span from the 60's to today. A typical hour of programming, according to their website, could include Led Zeppelin, The Rolling Stones, Coldplay, Norah Jones, and Sheryl Crow.
This programming (both the variety and the focus only on music) sets it apart from the forerunners, most of which Garland helped to create and bring to success. Research mentioned from their website shows that this mix of music will hit an audience in their early- to mid-thirties, or perhaps slightly younger. This demographic represents three quarters of the nation's wealth and spends a trillion dollars a year on goods and services. This money-controlling demographic, combined with the fact that The Tube is already broadcasting in 15% of the nation's markets, is the key to their primary income stream: advertising. Advertisers want to reach this wealthy audience and this audience is looking for entertainment. Thus, The Tube is perfectly positioned to bring in advertising dollars in exchange for reaching those with the money.
By broadcasting digital signals to homes with HDTVs, they are inherently targeting a wealthier viewer segment, meaning greater revenues from advertising. What's more, additional agreements are in the works to spread them to even more markets. Smart investors will add up the factors that can point to potential success: First-to-market leverage, cutting-edge technology now mandated by Congress, pre-existing distribution networks, quality programming, potential advertising reach, and a demographic with money that is attractive to advertisers. all of these are powerful indicators of a bright future.
But the trump card to make The Tube shine even brighter as an investment is a proven success factor known as Les Garland - the man who has revolutionized the American concept of music media, and is ready to change the way millions of people listen to and learn about new music.
Thomas J. McCarthy is an investor, entrepreneur and The Dean of Education at http://www.CollegeStock.com whose perspectives have changed the way people think about money and investing. http://www.CollegeStock.com is the World's #1 School of High-Risk Investing. CollegeStock seeks to provide a community where investors can learn about and discuss issues relating to finance and investing.
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